SYSTEM AND METHOD TO MANAGE SUPPLY CHAIN SETTLEMENT, RISK AND LIQUIDITY

• US 20050075941A1
• Filed: 12/23/2003
• Published: 04/07/2005
• Est. Priority Date: 10/06/2003
• Status: Active Grant

• Current Assignee: Bank of America Corp.
• Original Assignee: Bank of America Corp.
• Inventors: Johnson, Paul A., Mody, Sanjay H., Jetter, William J., Corral, David G., Collis, Michael J., Keesey, James, Zanzot, Mark D., Sill, Cheryl B.
• Granted Patent: US 8,050,975 B2
• Time in Patent Office: Days
• US Class Current: 705/26
• CPC Class Codes: G06Q 10/06 Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0635 Processing of requisition or of purchase orders
• CPC Class Codes: G06Q 40/12 Accounting
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

A system to manage a supply chain may include a purchase order management module operable on a processor to electronically receive purchase order information from a buyer and to store and track information associated with each purchase order. The system may also include an invoice and trade document management module to electronically store, aggregate and manage invoices and trade documents related to each purchase order and information required for presentment and reconciliation of each purchase order.

Claims

1. A system to manage a supply chain, comprising:

a purchase order management module operable on a processor to electronically receive purchase order information from a buyer and to store and track information associated with each purchase order; and

an invoice and trade document management module to electronically store, aggregate and manage invoices and trade document information related to each purchase order and required for presentment and reconciliation of each purchase order.

2. The system of claim 1, further comprising a database associated with the purchase order management module to store and track information associated with each purchase order.

3. The system of claim 1, further comprising a payment construction module to create a payable instrument in response to the purchase order information.

4. The system of claim 3, wherein the payment construction module is adapted to sort purchase orders by a predefined criteria.

5. The system of claim 3, further comprising a set of rules to control creation of each payable instrument.

6. The system of claim 5, wherein the payment construction module is adapted to support settlement under at least one of a binary condition, a qualified condition and a documentary condition.

7. The system of claim 3, wherein the payable instrument comprises at least one of a documentary credit instrument and an open account payment instrument.

8. The system of claim 3, wherein the payment construction module is adapted to transmit information to the purchase order management module to indicate which purchase orders are covered under a documentary credit instrument.

9. The system of claim 3, wherein the payment construction module is adapted to send documentary credit information to an issuer to issue a documentary credit.

10. The system of claim 1, further comprising an agreement management module to warehouse, adjudicate and provide status reporting on payment conditions related to each purchase order.

11. The system of claim 10, wherein the agreement management module is adapted to adjudicate payment conditions by tracking whether any payment conditions have been discharged.

12. The system of claim 10, wherein the agreement management module is adapted to compare seller discharge information to payment conditions to determine whether any the payment conditions have discharged.

13. The system of claim 12, wherein the agreement management module is programmable to discharge payment conditions on at least one of an exact match comparison or predefined variances from an exact match.

14. The system of claim 1, further comprising a collaboration and workflow module to support and manage workflow between the other modules and between the buyer and a seller.

15. The system of claim 14, further comprising a negotiation tool to enable the buyer and seller to negotiate and document discrepancies or disputes.

16. The system of claim 15, wherein the negotiation tool comprises a browser to negotiated disputes or discrepancies interactively and on-line.

17. The system of claim 14, wherein the collaboration and workflow module comprises a digital rights management feature to manage rights to and ownership of electronic title documents.

18. The system of claim 1, wherein the invoice and trade document management module is adapted to receive invoice information from a seller.

19. The system of claim 18, wherein the invoice information is receivable via one of a printed format, facsimile and a communication network.

20. The system of claim 1, further comprising an image capture and key entry module to convert non-electronic information into a predetermined electronic format for receipt and use by the invoice and trade document management module.

21. A system to manage a supply chain, comprising:

a purchase order management module operable on a processor to electronically receive purchase order information from a buyer and to store and track information associated with each purchase order;

an invoice and trade document management module to electronically store, aggregate and manage invoices and trade documents related to each purchase order and required for presentment and reconciliation of each purchase order;

a payment construction module to create a payable instrument in response to the purchase order information;

an agreement management module to warehouse, adjudicate and provide status reporting on payment conditions related to each purchase order; and

a collaboration and workflow module to support and manage workflow between the other modules and between the buyer and a seller.

22. The system of claim 21, further comprising a database associated with the purchase order management module to store and track information associated with each purchase order.

23. The system of claim 21, wherein the payment construction module is adapted to sort purchase orders by a criteria predefined by the buyer.

24. The system of claim 21, further comprising a set of rules to control creation of each payable instrument.

25. The system of claim 21, wherein the payment construction module is adapted to support settlement under at least one of a binary condition, a qualified condition and a documentary condition.

26. The system of claim 21, wherein the payable instrument comprises at least one of a documentary credit instrument and an open account instrument.

27. The system of claim 21, wherein the payment construction module is adapted to transmit information to the purchase order management module to indicate which purchase orders are covered under a documentary credit instrument.

28. The system of claim 21, wherein the payment construction module is adapted to send documentary credit information to a service provider to issue a documentary credit.

29. The system of claim 21, wherein the agreement management module is adapted to adjudicate payment conditions by tracking whether any payment conditions have been discharged.

30. The system of claim 21, wherein the agreement management module is adapted to compare seller discharge information to payment conditions to determine if the payment conditions have been discharged.

31. The system of claim 21, wherein the agreement management module is programmable to discharge payment conditions on at least one of an exact match comparison or predefined variances from an exact match.

32. The system of claim 21, further comprising a negotiation tool to enable the buyer and seller to negotiate and document discrepancies or disputes.

33. The system of claim 32, wherein the negotiation tool comprises a browser to negotiate disputes or discrepancies interactively and on-line.

34. The system of claim 21, wherein the collaboration and workflow module comprises a digital rights management feature to manage rights to and ownership of electronic title documents.

35. The system of claim 21, wherein the invoice and trade document management module is adapted to receive invoice information from a seller.

36. The system of claim 21, further comprising an image capture and key entry module to convert non-electronic information into predetermined electronic format for receipt and use by the invoice and trade document management module.

37. A method to manage a supply chain, comprising:

creating a payable instrument in an electronic format in response to purchase order information;

adjudicating any payment conditions; and

settling the payable instrument in response to adjudicating any payment conditions.

38. The method of claim 37, wherein adjudicating any payment conditions comprises at least one of discharging any payment conditions, accepting any payment condition discrepancies or accepting any payment condition discrepancies with changes.

39. The method of claim 37, further comprising electronically storing invoice and trade document information related to each purchase order.

40. The method of claim 37, wherein creating a payable instrument comprises applying a set of predefined rules.

41. The method of claim 37, wherein adjudicating any payment conditions comprises adjudicating any binary condition, qualified condition or documentary condition.

42. The method of claim 37, wherein creating a payable instrument comprises creating one of a documentary credit instrument and an open account instrument.

43. The method of claim 42, further comprising sending documentary credit information to an issuer to issue a documentary credit.

44. The method of claim 37, further comprising reporting status on payment conditions related to each purchase order.

45. The method of claim 37, wherein adjudicating any payment conditions comprises tracking whether any payment conditions have been discharged.

46. The method of claim 37, further comprising comparing seller discharge information to payment conditions to determine whether any payment conditions are dischargable.

47. The method of claim 46, further comprising discharging any payment conditions on at least one of an exact match between seller discharge information and payment conditions or a predefined variance from an exact match.

48. The method of claim 37, further comprising negotiating any discrepancies or disputes.

49. The method of claim 48, wherein negotiating any discrepancies or disputes comprises using a browser.

50. The method of claim 37, managing digital rights to and ownership of electronic title documents.

51. The method of claim 37, further comprising converting any non-electronic information into a predetermined electronic format.

52. A method to manage a supply chain, comprising:

receiving purchase order information from a buyer electron ical ly;

creating an accounts payable instrument in response to receiving the purchase order information, wherein the accounts payable instrument is created according to rules or conditions established and maintained by the buyer;

receiving an invoice or trade documents from a seller;

adjudicating any payment conditions;

resolving any discrepancies between a payment condition set by the buyer and discharge information presented by the seller; and

settling the accounts payable instrument in response to resolving any discrepancies.

53. The method of claim 52, wherein adjudicating any payment conditions comprises at least one of discharging any payment conditions, accepting any payment condition discrepancies or accepting any payment condition discrepancies with changes.

54. The method of claim 53, further comprising tracking adjudication of any payment conditions.

55. The method of claim 52, wherein adjudicating any payment conditions comprises adjudicating any binary condition, qualified condition or documentary condition.

56. The method of claim 52, wherein creating a payable instrument comprises creating one of a documentary credit instrument and an open account instrument.

57. The method of claim 52, further comprising comparing seller discharge information to payment conditions to determine whether any payment conditions are dischargable.

58. The method of claim 57, further comprising discharging any payment conditions on at least one of an exact match between seller discharge information and payment conditions or a predefined variance from an exact match.

59. A computer-readable medium having computer-executable instructions for performing a method, comprising:

creating a payable instrument in an electronic format in response to purchase order information;

adjudicating any payment conditions; and

settling the payable instrument in response to adjudicating any payment conditions.

60. The computer-readable medium having computer-executable instructions for performing the method of claim 59, wherein adjudicating any payment conditions comprises at least one of discharging any payment conditions, accepting any payment condition discrepancies or accepting any payment condition discrepancies with changes.

61. The computer-readable medium having computer-executable instructions for performing the method of claim 59, wherein creating a payable instrument comprises creating one of a documentary credit instrument and an open account instrument.

62. The computer-readable medium having computer-executable instructions for performing the method of claim 59, wherein adjudicating any payment conditions comprises adjudicating any binary condition, qualified condition or documentary condition.

63. The computer-readable medium having computer-executable instructions for performing the method of claim 59, tracking discharge of any payment instruments.

64. The computer-readable medium having computer-executable instructions for performing the method of claim 59, further comprising comparing seller discharge information to payment conditions to determine whether any payment conditions are dischargable.

65. The computer-readable medium having computer-executable instructions for performing the method of claim 64, further comprising discharging any payment conditions on at least one of an exact match between seller discharge information and payment conditions or a predefined variance from an exact match.